Use Case Logon User Use Case ID UC1 Preconditions 1 The User

Use Case Logonuseruse Case Id Uc1preconditions1 The User Is Logged

Use case: LogOnUser Use case ID: UC1 Preconditions: 1. The User is logged on to the system Primary scenario: 1. The use case begins when the User logs in 2. The system recognizes the User. 3. The system logs the User on the site right away. Secondary scenarios: The User do not logs in due to system failure. Postconditions: 1. The User is logged on the system. Secondary scenario: User Authentication Fails Preconditions: 1. The User has not been recognized by the system. Secondary scenario: 1 The scenario begins when the User selects “Log On”. 2. While the User is not authenticated and the number of authentication attempts is less than or equal to three 2.1 The system asks the User for their user name and password. 2.2 The User enters their user name and password. 2.3 The user name and/or password is wrong. 3. The system logs a security violation. 4. The system freezes the User account. Postconditions: 1. The User is not logged on. 2. The system has logged a security violation. 3. The User’s account has been frozen pending investigation of the security violation. Use case: LogOnCustomer Use case ID: UC2 Actors: Customer Preconditions: 1. The Customer is logged on to the system Primary scenario: 1. The use case begins when the Customer clicks “LogOn”. 2. While the Customer is not authenticated and the number of authentication attempts is less than or equal to three 2.2 The system asks the Customer for their user name and password. 2.3 The Customer enters their user name and password. 2.4 The user name and password are correct. 3. The system authenticates the Customer. Postconditions: 1. The Customer is logged on. Secondary scenario: Customer Authentication Fails 1. The scenario begins when the Customer selects “LogOn”. 2. While the Customer is not authenticated and the number of authentication attempts is less than or equal to three. 2.1 The system asks the User for their user name and password. 2.3 The user name and/or password is wrong. 3. The system freezes the User account. Preconditions: 1. The User is not logged on. 2. The system has logged a security violation. 3. The User’s account has been frozen pending investigation of the security violation. Use case: CancelingAnOrder Use case ID: UC3 Actors: Customer, Customer Care Assistant Preconditions: 1. The Customer is logged on to the system. 2. The system is displaying full details of an open order. Flow of event: 1. The use case begins when the Customer selects “Cancel Order”. 2. The system asks the Customer for confirmation. 3. The Customer confirms the cancellation. 4. The system marks the order as canceled. 5. The system records the time and date that the order was canceled. 6. The system tells the inventory actor to release the inventory items reserved for this order. Postconditions: 1. The order is canceled. Use case: ArrangeDelivery Use case ID: UC4 Actors: Customer care assistant, Logic department manager Preconditions: 1. The customer proceeded the order. Postconditions: 1. The use case begins when the Customer selects “Checkout”. 2. The system asks the Dispatcher actor to display the Customer order. 3. The system presents the final order to the Customer, including order details, price, shipping information, address, and credit card. 4. The system asks the Customer to accept or decline the order. 5. The Customer accepts the order. 6. The system arranges delivery. Postconditions: 1. The customer has accepted the order. 2. The order has been processed by the customer care assistant. Use case: TrackingOrder Use case ID: UC5 Actors: Customer Preconditions: 1. The order has been forwarded to the Dispatcher. 2. The Dispatcher is logged on to the system. 3. The order status is “pending”. 4. The order has been processed by the Dispatch Department. Flow of events: 1. The use case begins when the Dispatcher selects “Close Order”. 2. The system prompts the Dispatcher to enter order number, shipped date, shipping company, and tracking number if available. 3. The Dispatcher inputs the information. 4. The system finds the order and updates its status to “closed”. 5. The system adds shipping date, shipping company, and tracking number to the order. Postconditions: 1. The order status is “closed”. 2. The order details are updated with shipping information. Use case: CreateNewCustomer Use case ID: UC6 Preconditions: 1. The Customer is not logged on. Flow of events: 1. The use case begins when the Customer selects “New Customer”. 2. The system prompts for username and password. 3. The Customer enters the information. 4. The system checks username availability and password validity. 5. If username is unavailable or password invalid, the Customer re-enters details. 6. While mandatory info is missing, the system prompts for completion. 7. The system confirms customer info acceptance. 8. The system assigns a unique customer ID. Postconditions: 1. The system saves the Customer details. Use case: ViewOrder Use case ID: UC7 Actors: Customer Preconditions: 1. Orders have been identified for viewing. Flow of events: 1. The system displays the first five orders with summary details. 2. While browsing: 2.1 If more orders exist, Customer can select “Next” for subsequent pages. 2.2 If not on the first page, Customer can select “Previous”. 2.3 If the Customer selects an order, the system shows full order details and allows returning to browsing. Postconditions: None. Use case: WritingCustomerExperienceComments Use case ID: UC8 Actors: Customer Service Preconditions: 1. The Customer is logged on. 2. A Feedback has been raised. 3. Claims have been identified for viewing. Flow of events: 1. The system displays up to ten claims, showing order number, claim reason, and claim status. 2. Customer support can resolve claims. Postconditions: 1. Claims are either resolved or in process. 2. Claims can be raised (Raiseclaim).

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Use Case Logonuseruse Case Id Uc1preconditions1 The User Is Logged

The provided document outlines multiple use cases related to user authentication, order management, and customer interactions within a system. It details scenarios for logging in users and customers, handling failed authentication attempts, canceling orders, arranging deliveries, tracking orders, creating new customer profiles, viewing orders, and managing customer experience comments. For this analysis, the focus will be on the portion concerning capital budgeting for a new café named Hot New Café, which aims to expand its capacity due to increased demand.

Financial Parameters and Initial Data

The Hot New Café project is projected to generate sales of $800,000 annually for the first five years. The direct costs, including labor and materials, are estimated to be 50% of sales, totaling $400,000 per year. Indirect costs are projected at $100,000 annually. The total initial investment includes the cost of constructing the new cafe building, which amounts to $750,000. This cost will be depreciated straight-line over five years, resulting in annual depreciation expenses of $150,000. The firm's marginal tax rate is 37%, and its cost of capital is 12%, used for calculating net present value and feasibility.

Key Terms in Capital Budgeting

Capital budgeting involves evaluating the profitability and financial viability of investment projects. Two key terms are essential: Net Present Value (NPV) and Payback Period. NPV is the difference between the present value of cash inflows and outflows over the project's lifespan, discounted at the firm's cost of capital. It indicates whether a project adds value to the firm; a positive NPV suggests acceptability. The payback period measures how quickly an initial investment is recovered through net cash inflows, with shorter periods generally preferred, especially if aligned with company policy.

Development of the Capital Budget and Cash Flow Calculations

To accurately evaluate the project, detailed cash flows must be calculated annually over five years. Starting with annual revenues of $800,000, subtracting direct costs of $400,000, results in gross profit of $400,000. Deducting indirect costs of $100,000 yields operating income before depreciation of $300,000. Subtracting depreciation of $150,000 results in taxable income of $150,000. Applying the 37% tax rate gives after-tax income of approximately $94,500. However, since depreciation is a non-cash expense, adding it back to net income affords the project's annual net cash flow, which is $94,500 + $150,000 = $244,500 per year.

Calculations of NPV and Payback Period

The initial investment includes the building cost of $750,000. The annual after-tax cash flows, as calculated, are $244,500 over five years. The salvage value at the end of five years is assumed to be zero, given straight-line depreciation. The discount rate is 12%.

Net Present Value (NPV)

Using the formula for NPV:

NPV = Σ (Cash Flow / (1 + r)^t) - Initial Investment

Calculating the present value of annuity of $244,500 over 5 years at 12% gives:

PV of cash inflows = $244,500 [1 - (1 + 0.12)^(-5)] / 0.12 ≈ $244,500 3.60477 ≈ $880,959

NPV = $880,959 - $750,000 = approximately $130,959

Payback Period (P/B)

The payback period is calculated by dividing the initial investment by annual net cash flows:

Payback Period = $750,000 / $244,500 ≈ 3.07 years

Analysis and Decision-Making

The positive NPV of approximately $130,959 suggests that the project will add value to the firm, making it financially attractive. The payback period is just over three years, which is slightly beyond the company's policy of a maximum of three years. This discrepancy needs consideration. Given that the project has a positive NPV and the payback period is very close to the threshold, managers should evaluate whether strategic factors or risk considerations support proceeding with the investment. If maintaining strict adherence to the policy, the project might be rejected; otherwise, it may be accepted due to its profitability.

Conclusion

Overall, based on the financial analysis, the Hot New Café project shows promising returns with a positive NPV and a marginally acceptable payback period. It is advisable to accept the project if strategic factors favor the expansion, but caution is warranted given the slightly exceeded payback policy limit. Capital budgeting analyses such as NPV and payback period are crucial for informed decision-making, enabling managers to weigh financial viability against strategic objectives.

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